$10,000 Personal Loans: Approvals Made Easy Despite Bad Credit

It is forgivable that many people expect that a $10,000 personal loan is almost impossible to get if an applicant has a poor credit history. It is no secret that traditional lenders are reluctant to lend to borrowers with very low scores.The good news is that it is possible to get approval, despite bad credit ratings, without having to risk plunging yourself deeper into financial crisis. The key is to avoid the traditional lenders, and to avoid the traditional loan products. Instead, it is necessary to think outside the box a little.As with all personal loans, however, there is basic criteria that must be met. These include proof of age (over 18), proof of citizenship or long-term residence, as well as income and gainful employment. Here are some alternative lending options worth considering.Consider Home EquityPeople do not want to risk their home, especially when they are already paying a mortgage. But so long as mortgage repayments have been made on time, every home gains in equity value. This is something that a $10,000 personal loan can be granted against.Basically, the equity that a home has can be turned into cash. For example, a home purchased for $200,000 may see $50,000 wiped off the principal of the mortgage over 6 or 7 years. That leaves an equity of $50,000, which can be used as collateral to improve the chances of getting approval despite bad credit.Of course, security of any kind can be lost if the personal loan is defaulted upon. So, it is important that the calculations are done accurately before assessing the worth of placing part of your home up as security.Consider Large Payday LoansNormally, a payday loan is small in size and must be repaid in 14-30 days. A $10,000 personal loan is extremely large for this kind of loan package, but if there is an urgent need to access this kind of cash then negotiations that can make it possible.The problem with payday loans is that, as the name suggests, they are repaid directly from paychecks. Repayment schedules are very short and the interest rate charged is typically very high. If the loan is $500, for example, the loan may need to be repaid in full within 30 days, with $650 including interest required to clear it. The chief advantage is that, so long as the income is large enough, approval despite bad credit is guaranteed.With larger sums, however, the repayment can be stretched over a longer period - perhaps as long as 6 or 8 months. Still, on a large personal loan, for example of $10,000, the total repayment may be as much as $12,000 - translating to $2,000 per month over 6 months. Such repayment is only worthwhile only if the loan sum was needed very quickly.Consider Employer LoansAnother option when seeking a $10,000 personal loan is an employer loan. This is where someone borrows directly from their employer on the basis of upcoming salary. This can be a great step to take for a number of reasons.First of all, approval despite bad credit is not a problem because the lender is also the source of income. Repayments are simply taken out of the salary packet each month, so there is no chance at all of payments being missed.What is more, interest rates are kept low because employers are not regulated lenders. At most, they may add a little on to cover costs, but the personal loan is extremely affordable.